F.Y B.COM
SEMESTER - 2
FINANCIAL ACCOUNTING
(FA)
MCQ - JOINT VENTURE ACCOUNT
JOINT VENTURE ACCOUNT
1. M and N enter into a Joint venture where M supplies goods worth Rs.6000 and spends Rs.100 on various expenses. N sells the entire lot for Rs. 7,500 meeting selling expenses amounting to Rs. 200. Profit sharing ratio equal. N remits to M the amount due. The amount of remittance will be:
(a) Rs.6,700
(b) Rs.7,300
(c) Rs.6,400
(d) Rs.6,100
2. A purchased goods costing 42500. B sold goods costing Rs 40000 at Rs 50000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:
(a) Rs.3,125
(c) Rs.6,400
(d) Rs.6,100
2. A purchased goods costing 42500. B sold goods costing Rs 40000 at Rs 50000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:
(a) Rs.3,125
(b) Rs.2,500
(c) Rs.3,000
(d) none
3. Which of the following statement is true?
(a) Only one venture bears the risk
(b) Only one venture can sell the goods
(c) Only one venture can purchase the goods
(d) In joint venture, provisions of partnership act applies
4. Which of the following statement is true:
(a) In case of separate sets of books method of Joint Venture, co-venture's contribution of goods is debited in Joint Bank A/c
(b) Co-venture's contribution in cash is debited in Venture's personal account
(c) Discount on discounting of B/R is debited to Venture's personal account
(d) Contract money received is credited to Joint Venture Account.
5. For opening Joint Bank account, in case of separate sets of books:
(a) Venture A/c will be debited and Ventures A/c will be credited
(b) Joint Bank A/c is debited and Ventures Capital A/c is credited
(c) Joint Venture A/c is debited and Joint Bank A/c will be credited
(d) Joint Bank A/c will be debited and Joint Venture A/c will be credited
6. For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:
(a) Plant A/c will be debited and Joint Bank A/c will be credited
(b) Joi Venture A/c will be debited and Joint Bank A/c will be credited
(c) Plant A/c will A/c Debited and Ventures Capital A/c will be credited
(d) Joint Venture A/c will be debited and Plant A/c will be credited
7. For material supplied from own stock by any of the venture, the correct journal entry will be; (In case of separate sets of books)
(a) Joint Venture A/c will be debited and Ventures Capital A/c will be credited
(b) Joint Venture A/c will be debited and Joint Bank A/c will be credited
(c) Joint Venture A/c will be debited and Material A/c will be credited
(d) Joint Bank A/c will be debited and Joint Venture A/c will be credited
8. A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd make an equity issue of 100000 equity shares of Rs 10 each. 80% of the issue are subscribed by the party. The profit sharing ratio between A and B is 3:2. The balance shares not Subscribed by the public, purchased by A and B in profit sharing ratio. How many shares to be purchased by A.
(a) 80,000 Shares
(d) none
3. Which of the following statement is true?
(a) Only one venture bears the risk
(b) Only one venture can sell the goods
(c) Only one venture can purchase the goods
(d) In joint venture, provisions of partnership act applies
4. Which of the following statement is true:
(a) In case of separate sets of books method of Joint Venture, co-venture's contribution of goods is debited in Joint Bank A/c
(b) Co-venture's contribution in cash is debited in Venture's personal account
(c) Discount on discounting of B/R is debited to Venture's personal account
(d) Contract money received is credited to Joint Venture Account.
5. For opening Joint Bank account, in case of separate sets of books:
(a) Venture A/c will be debited and Ventures A/c will be credited
(b) Joint Bank A/c is debited and Ventures Capital A/c is credited
(c) Joint Venture A/c is debited and Joint Bank A/c will be credited
(d) Joint Bank A/c will be debited and Joint Venture A/c will be credited
6. For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:
(a) Plant A/c will be debited and Joint Bank A/c will be credited
(b) Joi Venture A/c will be debited and Joint Bank A/c will be credited
(c) Plant A/c will A/c Debited and Ventures Capital A/c will be credited
(d) Joint Venture A/c will be debited and Plant A/c will be credited
7. For material supplied from own stock by any of the venture, the correct journal entry will be; (In case of separate sets of books)
(a) Joint Venture A/c will be debited and Ventures Capital A/c will be credited
(b) Joint Venture A/c will be debited and Joint Bank A/c will be credited
(c) Joint Venture A/c will be debited and Material A/c will be credited
(d) Joint Bank A/c will be debited and Joint Venture A/c will be credited
8. A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd make an equity issue of 100000 equity shares of Rs 10 each. 80% of the issue are subscribed by the party. The profit sharing ratio between A and B is 3:2. The balance shares not Subscribed by the public, purchased by A and B in profit sharing ratio. How many shares to be purchased by A.
(a) 80,000 Shares
(b) 72,000 Shares
(c) 12,000 Shares
(d) 8,000 Shares
9. A and B enter into a joint venture to underwrite shares of K Ltd. K Ltd make an equity issue of 200000 equity shares. 80% of the shares underwritten by the venture. 160000 shares are subscribed by the public. How many shares are to be subscribed by the venturer?
(a) Nil
(b) 32,000
(c) 36,000
(d) None
10. A and B purchased a piece of land for Rs 20,000 and sold it for Rs.60,000 in 2005. Originally A had contributed Rs 12000 and B Rs.8000. What will be the profit on venture?
(a) Rs. 40,000
9. A and B enter into a joint venture to underwrite shares of K Ltd. K Ltd make an equity issue of 200000 equity shares. 80% of the shares underwritten by the venture. 160000 shares are subscribed by the public. How many shares are to be subscribed by the venturer?
(a) Nil
(b) 32,000
(c) 36,000
(d) None
10. A and B purchased a piece of land for Rs 20,000 and sold it for Rs.60,000 in 2005. Originally A had contributed Rs 12000 and B Rs.8000. What will be the profit on venture?
(a) Rs. 40,000
(b) Rs. 20,000
(c) Rs. 60,000
(d) Nil
11. A and B enter into adjoint venture-sharing profit and-fesses in the ratio 2:1. A purchased goods costing Rs 2,00,000. B sold the goods for Rs 2,50,000. A is entitled to get 1% Commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be:
(a) Rs.35,500
11. A and B enter into adjoint venture-sharing profit and-fesses in the ratio 2:1. A purchased goods costing Rs 2,00,000. B sold the goods for Rs 2,50,000. A is entitled to get 1% Commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be:
(a) Rs.35,500
(b) Rs.36,000
(c) Rs.34,000
(d) Rs.38,000
12. P and Q enter into a Joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs 2,00,000: Other expenses of P Rs 10000. Q sold the goods for 180000. Remaining goods were taken over by Q at Rs 20000. The amount of final remittance to be paid by Q to P will be:
(a) 2,15,000
12. P and Q enter into a Joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs 2,00,000: Other expenses of P Rs 10000. Q sold the goods for 180000. Remaining goods were taken over by Q at Rs 20000. The amount of final remittance to be paid by Q to P will be:
(a) 2,15,000
(b) 2,04,000
(c) 2,10,000
(c) 2,10,000
(d) None
13. C and D entered into a Joint Venture to construct a bridge. They did not open separate set of books. They shared profits and losses as 3:2. C contributed Rs.1,50,000 for purchase of materials. D paid wages amounting to Rs.80,000. Other expenses were paid as:
13. C and D entered into a Joint Venture to construct a bridge. They did not open separate set of books. They shared profits and losses as 3:2. C contributed Rs.1,50,000 for purchase of materials. D paid wages amounting to Rs.80,000. Other expenses were paid as:
D-15,000
C-5,000
C-5,000
C purchased one machine for Rs: 20,000. The machine was taken over by C for Rs 10,000. Total contract value of Rs. 3,00,000 was received by D. What will be the profit on venture?
(a) Rs.30,000
(a) Rs.30,000
(b) Rs.40,000
(c) Rs.20,000
(d) Rs.15,000
14. R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs 1,00,000 and spent Rs 10,000 in sending the goods to M. He also paid Rs 5000 for insurance. M spent Rs.10,000 as selling expenses and sold goods for 200000. Remaining goods were taken over by him at Rs 5000. What will be the amount to be remitted by M to R as final settlement?
(a) Rs.1,55,000
(d) Rs.15,000
14. R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs 1,00,000 and spent Rs 10,000 in sending the goods to M. He also paid Rs 5000 for insurance. M spent Rs.10,000 as selling expenses and sold goods for 200000. Remaining goods were taken over by him at Rs 5000. What will be the amount to be remitted by M to R as final settlement?
(a) Rs.1,55,000
(b) Rs.1,50,000
(c) Rs.1,15,000
(d) Rs.80,000
15. R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs 10,000 in sending the goods to M. He also paid Rs 5000 for insurance. M spent Rs 10,000 as selling expenses and sold goods for 2,00,000. Remaining goods were taken over by-him at Rs.5,000. Find out profit on venture?
(a) Rs.70,000
(d) Rs.80,000
15. R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs 10,000 in sending the goods to M. He also paid Rs 5000 for insurance. M spent Rs 10,000 as selling expenses and sold goods for 2,00,000. Remaining goods were taken over by-him at Rs.5,000. Find out profit on venture?
(a) Rs.70,000
(b) Rs.75,000
(c) Rs.80,000
(d) Rs.85,000
16. A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A WI purchase goods and B will affect the sale. A purchase goods costing Rs 2,00,000. B sold it for Rs.3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period.. The amount of interest received by A will be
(a) 20,000
(b) 10,000
(c) 15,000
(d) 25,000
(d) Rs.85,000
16. A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A WI purchase goods and B will affect the sale. A purchase goods costing Rs 2,00,000. B sold it for Rs.3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period.. The amount of interest received by A will be
(a) 20,000
(b) 10,000
(c) 15,000
(d) 25,000
17. A bought goods of the value of Rs 10000 and consigned them to B to be sold by them on a joint venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on consignment. The amount of bill will be:
(a) Rs.10,000
(a) Rs.10,000
(b) Rs.8,000
(c) Rs.6,000
(d) Rs.9,000
18. A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a. joint venture, profits being divided equally, A paid Rs.1,000 for freight and insurance. A draws a bill on B for Rs 10000. A got it discounted at Rs.9,500. B sold the goods for Rs 15,000. Commission payable to B, Rs 500. Find out the profit on venture ?
(a) Rs.3,000
(d) Rs.9,000
18. A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a. joint venture, profits being divided equally, A paid Rs.1,000 for freight and insurance. A draws a bill on B for Rs 10000. A got it discounted at Rs.9,500. B sold the goods for Rs 15,000. Commission payable to B, Rs 500. Find out the profit on venture ?
(a) Rs.3,000
(b) Rs.3,500
(c) Rs.4,000
(d) Rs.3,200
19. A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs. 1,000 for freight and insurance. A draws a bill on B for Rs. 10,000. A got it discounted at Rs.9,500. B sold the goods for Rs. 15,000. Commission payable to B, Rs 500. The amount to be remitted by B to A will be:
(a) Rs.12,500
(b) Rs.13,000
(c) Rs.14,500
(d) Rs.13,500
20. If any stock is taken over by the venturer, it will be treated as an:
(a) Income of the joint venture, hence credited to Joint Venture Account
(b) Expenses of Joint enture, hence debited to Joint Venture Account
(c) To be ignored from Joint Venture Transaction
(d) It will be treated in the personal book of the venturer and not in the books of Jt Venture.
21. Advise which of the statement is true:
(a) The Joint Venture can be formed by a single person only.
(b) A legal deed should be drafted before forming Joint Venture.
(c) The profit be shared between the venturer in agreed ratio.
(d) Joint Venture follows going concern concept.
22. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.80,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs 2000. B sells goods on behalf of the joint venture and realizes Rs 150000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out A's share of profit on venture?
(a) Rs.24,300
(b) Rs.25,000
(c) Rs.26,000
(d) Rs.20,300
23. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.60,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.16,000 and his expenses amount to Rs.3,000. B sells goods on behalf of the joint venture and realizes Rs.1,20,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. How much amount, B will pay to A as final settlement?
(a) Rs.83,400
(d) Rs.3,200
19. A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs. 1,000 for freight and insurance. A draws a bill on B for Rs. 10,000. A got it discounted at Rs.9,500. B sold the goods for Rs. 15,000. Commission payable to B, Rs 500. The amount to be remitted by B to A will be:
(a) Rs.12,500
(b) Rs.13,000
(c) Rs.14,500
(d) Rs.13,500
20. If any stock is taken over by the venturer, it will be treated as an:
(a) Income of the joint venture, hence credited to Joint Venture Account
(b) Expenses of Joint enture, hence debited to Joint Venture Account
(c) To be ignored from Joint Venture Transaction
(d) It will be treated in the personal book of the venturer and not in the books of Jt Venture.
21. Advise which of the statement is true:
(a) The Joint Venture can be formed by a single person only.
(b) A legal deed should be drafted before forming Joint Venture.
(c) The profit be shared between the venturer in agreed ratio.
(d) Joint Venture follows going concern concept.
22. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.80,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs 2000. B sells goods on behalf of the joint venture and realizes Rs 150000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out A's share of profit on venture?
(a) Rs.24,300
(b) Rs.25,000
(c) Rs.26,000
(d) Rs.20,300
23. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.60,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.16,000 and his expenses amount to Rs.3,000. B sells goods on behalf of the joint venture and realizes Rs.1,20,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. How much amount, B will pay to A as final settlement?
(a) Rs.83,400
(b) Rs.93,200
(c) Rs.80,000
(d) Rs.66,000
24. A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. What will be the amount to be remitted by V to A?
(a) Rs.13,500
(d) Rs.66,000
24. A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. What will be the amount to be remitted by V to A?
(a) Rs.13,500
(b) Rs.15,000
(c) Rs.11,000
(c) Rs.11,000
(d) Rs.10,000
25. A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. Find out profit on venture?
(a) Rs.3,000
25. A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. Find out profit on venture?
(a) Rs.3,000
(b) Rs.5,000
(c) Rs.6,000
(d) Rs.3,500
26. A purchased 1,000 kg of rice costing Rs.200 each. Carriage 2,000, insurance 3,000. 4/5th of the boxes were sold by B at Rs.250 per boxes. Remaining stock were taken Over by B at cost. The amount of stock taken over will be:
(a) Rs40,000
(c) Rs.6,000
(d) Rs.3,500
26. A purchased 1,000 kg of rice costing Rs.200 each. Carriage 2,000, insurance 3,000. 4/5th of the boxes were sold by B at Rs.250 per boxes. Remaining stock were taken Over by B at cost. The amount of stock taken over will be:
(a) Rs40,000
(b) Rs.41,000
(c) Rs.50,000
(d) Rs.50,200
27: Goods costing Rs. 10,000 destroyed by an accident, insurance claim nil.
27: Goods costing Rs. 10,000 destroyed by an accident, insurance claim nil.
(a) Rs 10000 will be credited to Joint Venture Account.
(b) No Entry will be made in the books of Joint Venture
(c) Rs 10000 will be debited in Joint Venture Account as Loss
(d) Rs 8000 will be credited in Joint Venture Account
28. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs 60000 and incurs expenses amounting Rs 6000. B supplies goods to the value of Rs 14000 and his expenses amount to RS 1000. B sells goods on behalf of the joint venture and realizes Rs 100000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?
(a) Rs.14,400
(b) No Entry will be made in the books of Joint Venture
(c) Rs 10000 will be debited in Joint Venture Account as Loss
(d) Rs 8000 will be credited in Joint Venture Account
28. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs 60000 and incurs expenses amounting Rs 6000. B supplies goods to the value of Rs 14000 and his expenses amount to RS 1000. B sells goods on behalf of the joint venture and realizes Rs 100000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?
(a) Rs.14,400
(b) Rs.14,000
(c) Rs.13,000
(d) Rs.13,200
29. A purchased goods costing 1,00,000. B sold the goods for Rs.1,50,000. Profit sharing ratio between A and B equal. If same sets of books is maintained, what will be the final remittance?
(a) B will remit Rs.1,25,000 to A
(b) B will remit Rs.150000 to A
(c) A will remit Rs.1,00,000 to B
(d) B will remit Rs.25000 to A
30. A purchased goods costing 200000, B sold 4/5th of the goods for Rs 250000. Balance goods were taken over by B at cost less 20%. If same sets of books is maintained, find out profit on venture?
(a) Rs.82,000
(c) Rs.13,000
(d) Rs.13,200
29. A purchased goods costing 1,00,000. B sold the goods for Rs.1,50,000. Profit sharing ratio between A and B equal. If same sets of books is maintained, what will be the final remittance?
(a) B will remit Rs.1,25,000 to A
(b) B will remit Rs.150000 to A
(c) A will remit Rs.1,00,000 to B
(d) B will remit Rs.25000 to A
30. A purchased goods costing 200000, B sold 4/5th of the goods for Rs 250000. Balance goods were taken over by B at cost less 20%. If same sets of books is maintained, find out profit on venture?
(a) Rs.82,000
(b) Rs.90,000
(c) Rs.50,000
(d) none
31. A purchased goods costing Rs.2,00,000. B sold the goods for Rs 2,80,000. Unused material costing Rs 10,000 taken over by Aat Rs.8,000. A is entitled to get 1% commission on purchase. B is entitled to get 2% commission on sales. Profit sharing ratio equal. A's share of profit on venture will be:
(a) Rs.40,000
(d) none
31. A purchased goods costing Rs.2,00,000. B sold the goods for Rs 2,80,000. Unused material costing Rs 10,000 taken over by Aat Rs.8,000. A is entitled to get 1% commission on purchase. B is entitled to get 2% commission on sales. Profit sharing ratio equal. A's share of profit on venture will be:
(a) Rs.40,000
(b) Rs40,400
(c) Rs40,600
(d) Rs40,200
32. A and B enter into joint venture sharing profit and loss equally. A purchased 100 kg of rice @ Rs 20/kg. Brokerage paid Rs 200, carriage paid Rs 300. B sold 90 kg of rice @ Rs 22/ kg. Balance rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be:
(a) Rs.200
(b) Rs.250
(c) Rs.230
(d) Rs.220
33. A and B enter into a joint venture sharing profit and losses equally. A purchased 5,000 kg of rice @ RS 50/kg. B purchased 1,000 kg of wheat @ RS 60/kg. A sold 1,000 kg of wheat @ RS 70/kg and B sold 5,000 kg of rice @ RS 60/kg. The profit on venture when same sets of book is maintained will be:
(a) Rs.1,10,000
(c) Rs40,600
(d) Rs40,200
32. A and B enter into joint venture sharing profit and loss equally. A purchased 100 kg of rice @ Rs 20/kg. Brokerage paid Rs 200, carriage paid Rs 300. B sold 90 kg of rice @ Rs 22/ kg. Balance rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be:
(a) Rs.200
(b) Rs.250
(c) Rs.230
(d) Rs.220
33. A and B enter into a joint venture sharing profit and losses equally. A purchased 5,000 kg of rice @ RS 50/kg. B purchased 1,000 kg of wheat @ RS 60/kg. A sold 1,000 kg of wheat @ RS 70/kg and B sold 5,000 kg of rice @ RS 60/kg. The profit on venture when same sets of book is maintained will be:
(a) Rs.1,10,000
(b) Rs.1,00,000
(c) Rs.1,20,000
(d) Rs.60,000
34. A and B enter into a joint venture sharing profits and losses equally. A purchased 5,000 kg of rice@ Rs 50/kg. B purchased 1,000 kg of wheat @Rs 60/kg. A sold 1,000 kg of wheat @ Rs 70/kg and B sold 5000 kg of rice @Rs 60/kg. What will be the final remittance?
(a) B will remit Rs. 2,10,000 to A
(b) A will remit Rs, 2,10,000 to B
(c) A will remit Rs. 200000 to B
(d) B will remit Rs 180000 to A
35. A and B enter into a Joint Venture by opening a joint bank account contributing Rs.10,00,000. The profit sharing ratio between A and B is 3:2. How much amount to be Contributed by A?
(a) Rs.6,00,000
34. A and B enter into a joint venture sharing profits and losses equally. A purchased 5,000 kg of rice@ Rs 50/kg. B purchased 1,000 kg of wheat @Rs 60/kg. A sold 1,000 kg of wheat @ Rs 70/kg and B sold 5000 kg of rice @Rs 60/kg. What will be the final remittance?
(a) B will remit Rs. 2,10,000 to A
(b) A will remit Rs, 2,10,000 to B
(c) A will remit Rs. 200000 to B
(d) B will remit Rs 180000 to A
35. A and B enter into a Joint Venture by opening a joint bank account contributing Rs.10,00,000. The profit sharing ratio between A and B is 3:2. How much amount to be Contributed by A?
(a) Rs.6,00,000
(b) Rs.4,00,000
(c) Rs.3,00,000
(d) Rs.5,00,000
36. A, B and C are co-venturer. The relative Profit sharing ratio between A and B is 3:2 and between B and C is also 3:2. Find out the PSR between A, B and C.
(a) 3:2:2
36. A, B and C are co-venturer. The relative Profit sharing ratio between A and B is 3:2 and between B and C is also 3:2. Find out the PSR between A, B and C.
(a) 3:2:2
(b) 9:6:4
(c) 4:3:2
(d) 3:2:1
37. A and B entered into a joint venture. They opened a joint bank account by contributing Rs.2,00,000 each. The expenses incurred on venture is exactly equal to Rs.2,00,000. Once the work is completed, contract money received by cheque Rs 4,00,000 and in shares Rs 50,000.
37. A and B entered into a joint venture. They opened a joint bank account by contributing Rs.2,00,000 each. The expenses incurred on venture is exactly equal to Rs.2,00,000. Once the work is completed, contract money received by cheque Rs 4,00,000 and in shares Rs 50,000.
The shares are sold for Rs 40,000. What will be the profit on venture?
(a) Rs.2,50,000
(a) Rs.2,50,000
(b) Rs.2,40,000
(c) Rs.4,40,000
(d) Rs.4,50,000
38. If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:
(a) The drawer of the bill
(b) The drawee of the bill
(c) The discounting charges will be recorded in memorandum account
(d) The discounting charges will be borne by bank
39. Which of the following statement is not true?
(a) Joint venture is a going concern
(b) Joint venture is terminable in nature
(c) Joint venture does not follow accrual basis of accounting
(d) The co-venturer shares the profit in agreed ratio
40. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies-Goods to the value of Rs.50,000 and incurs expenses amounting to Rs 5,400.B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 per cent on sales. B settles his account by bank draft. What will be the final remittance?
(a) B will remit Rs.69,160 to A
(b) A will remit Rs.69,160 to B
38. If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:
(a) The drawer of the bill
(b) The drawee of the bill
(c) The discounting charges will be recorded in memorandum account
(d) The discounting charges will be borne by bank
39. Which of the following statement is not true?
(a) Joint venture is a going concern
(b) Joint venture is terminable in nature
(c) Joint venture does not follow accrual basis of accounting
(d) The co-venturer shares the profit in agreed ratio
40. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies-Goods to the value of Rs.50,000 and incurs expenses amounting to Rs 5,400.B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 per cent on sales. B settles his account by bank draft. What will be the final remittance?
(a) B will remit Rs.69,160 to A
(b) A will remit Rs.69,160 to B
(c) A will remit Rs.69,000 to B
(d) B will remit Rs.69,000 to A
41. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs 5,400. B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 per cent on sales. B settles his account by bank draft.
What will be the profit on venture?
(a) Rs.17,200
(b) Rs.17,000
(c) Rs.18,000
(d) Rs.18,200
42. In a joint venture A contributes RS 5000 and B contributes RS 10000. Goods are purchased for Rs 11200. Expenses amount to Rs 800. Sales amount to Rs 14000 the remaining goods were taken by B at an agree price of Rs 400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?
(d) B will remit Rs.69,000 to A
41. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs 5,400. B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 per cent on sales. B settles his account by bank draft.
What will be the profit on venture?
(a) Rs.17,200
(b) Rs.17,000
(c) Rs.18,000
(d) Rs.18,200
42. In a joint venture A contributes RS 5000 and B contributes RS 10000. Goods are purchased for Rs 11200. Expenses amount to Rs 800. Sales amount to Rs 14000 the remaining goods were taken by B at an agree price of Rs 400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?
(a) 5,800
(b) 6,000
(c) 5,000
(d) 10,800
43. Which of the following statement is true?
(a) There is no difference between Jt Venture and Partnership
(b) Consignment and Jt Venture is same
(c) In case of Jt Venture, none of the act is applicable
(d) In case of Jt Venture, the number of related party is one only.
44. A and B enter into a venture sharing profit and losses in the ratio 2:3. Goods purchased by A for Rs. 45,000. Expenses incurred by A Rs.13,500 and by B Rs.5,200. B sold the goods for Rs.85,000. Remaining stock taken over by B at Rs.7,200. What will be the final remittance to be made by B to A:
(a) Rs.69,900
(b) 6,000
(c) 5,000
(d) 10,800
43. Which of the following statement is true?
(a) There is no difference between Jt Venture and Partnership
(b) Consignment and Jt Venture is same
(c) In case of Jt Venture, none of the act is applicable
(d) In case of Jt Venture, the number of related party is one only.
44. A and B enter into a venture sharing profit and losses in the ratio 2:3. Goods purchased by A for Rs. 45,000. Expenses incurred by A Rs.13,500 and by B Rs.5,200. B sold the goods for Rs.85,000. Remaining stock taken over by B at Rs.7,200. What will be the final remittance to be made by B to A:
(a) Rs.69,900
(b) Rs.11,400
(c) Rs.17,100
(d) Rs.7,200
45. If separate sets of books is maintained and suppliers grant discount at the time of making the payment for purchase of goods, such discount received-will be treated as:
(a) Income of Joint Venture, hence credited to Joint Venture A/c
(b) Will be credited to Joint Bank A/c.
(c) Will be credited to Co-venture's Capital A/c
(d) Will be ignored from the books
46. If unsold goods costing Rs 20000 is taken over by Venturer at Rs 15000, the Joint Venture A/c will be credited by:
(a) Rs.20,000
(b) Rs.15,000
(c) Rs.50,001
(c) Rs.50,001
(d) Nil
47. A and B enter into a venture sharing profits and losses in the ratio 2:3. Goods purchased by A for Rs. 45,000. Expenses incurred by A, Rs.13,500 and by B Rs.5,200. B sold the goods for Rs.85,000. Remaining stock taken over by B at Rs.7,200. The profit on venture will be:
(a) Rs.28,500
(b) Rs.21,300
(c) Rs.35,700
(d) Rs.9,800
48. State which of the statement is true?
(a) Memorandum Jt Venture Account is prepared to find out profit on venture
(b) Memorandum Jt venture Account is prepared to find out amount due from co-venturer
(c) Memorandum Jt Venture Account is prepared when separate sets of books is maintained
(d) In Memorandum Jt Venture Account only one venture's transaction is recorded
49. A and B enter into a joint venture for purchase and sale of Type-writer. A purchased Typewriter costing Rs.1,00,000. Repairing expenses Rs.10,000, printing expenses Rs 10,000. B sold it at 20% margin on selling price. The sales value will be:
(a) Rs.1,25,000
47. A and B enter into a venture sharing profits and losses in the ratio 2:3. Goods purchased by A for Rs. 45,000. Expenses incurred by A, Rs.13,500 and by B Rs.5,200. B sold the goods for Rs.85,000. Remaining stock taken over by B at Rs.7,200. The profit on venture will be:
(a) Rs.28,500
(b) Rs.21,300
(c) Rs.35,700
(d) Rs.9,800
48. State which of the statement is true?
(a) Memorandum Jt Venture Account is prepared to find out profit on venture
(b) Memorandum Jt venture Account is prepared to find out amount due from co-venturer
(c) Memorandum Jt Venture Account is prepared when separate sets of books is maintained
(d) In Memorandum Jt Venture Account only one venture's transaction is recorded
49. A and B enter into a joint venture for purchase and sale of Type-writer. A purchased Typewriter costing Rs.1,00,000. Repairing expenses Rs.10,000, printing expenses Rs 10,000. B sold it at 20% margin on selling price. The sales value will be:
(a) Rs.1,25,000
(b) Rs.1,50,000
(c) Rs.1,00,000
(d) Rs.1,40,000
50. Which of the following statement is true?
(a) When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.
(b) When separate set of books is maintained, expenses paid by venturer will be credited to venturer's capital account.
(c) When separate set of books is maintained, expenses paid by venturer will be credited to Jt. venture account.
(d) When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.
51. In case of joint venture, a minor:
(a) Can be a co-venturer for the benefit of the venture.
(b) Can be a co-venturer if all other co-venturers agree
(c) Can be a co-venturer if permitted by the competent authority.
(d) Cannot be a co-venturer.
52. Which of the following statement is true?
(a) Co-ventures always shares profits and losses equally.
(b) Number of co-ventures can never be more than two.
(c) The relationship between co-venturers is principal & agent.
(d) Co-venturers may contribute funds for running the venture.
53. A&B has started a joint venture for purchase and sale of garments: Initial capital contribution was Rs.25,000 and Rs.50,000 respectively. There is no written agreement about share of profit loss amongst them. They purchased garments worth Rs.50,000 and sold for Rs.75,000. The profit of Rs.25,000 shared by them as:-
(a) Rs.8,333 and Rs.16,667
(b) Rs.10,000 and Rs.15,000
(c) Rs.12,500 and Rs.12,500
(d) Rs.20,000 and Rs.5,000
54. Karthik and Dhoni enter into a joint venture sharing profit and loss in the ratio 2:1. Karthik purchased the goods costing Rs.2,00,000. Dhoni sold the goods for Rs.2,50,000. Karthik is entiled to get 1% commission on purchase and Dhoni is entitled to get 5% commission on sales. The profit on venture will be
(a) Rs.35,500
(b) Rs.36,000
(c) Rs.34,000
(d) Rs.38,000
55. The minimum number of co-venture will be at-least _________ in joint venture business.
(a) 2
(b) 5
(c) 7
(d) 4
56. Which of the following is true?
(a) Co-ventures always shares profit equally.
(b) Number of co-ventures can never be more than two.
(c) The relationship between co-ventures is principal and agent.
(d) Co-ventures may contribute funds running the venture.
57. C&D enter into a joint venture to share profit in the ratio 5:3. A part from the profit, D is entitled to a commission of 5% of net profit after charging such commission. If net profit of joint venture is Rs.33,600 before charging such commission. What will be share proft C and D:
(a) C will get profit Rs.19,950 and D Rs.11,970
(b) C will get profit Rs.20,000 and D Rs.12,000
(c) C will get profit Rs.21,000 and D Rs.12,600
(d) C will get profit Rs.21,600 and D Rs.12,600
58. Aastha and Shivani entered into a joint venture sharing profits and losses in the ratio 2:1. Aastha purchased goods costing Rs.30,000. Shivani sold the goods for Rs.40,000. Aastha was entitled to get 1%. Commission on purchase and Shivani was entitled for 5% commission on sales. Aastha's and Shivani's share in profit on venture Would be:
(a) Rs.1,467 and Rs.733 respectively
(b) Rs.5,133 and Rs.2,567 respectively
(c) Rs.4,400 and Rs.2,200 respectively
(d) Rs.3,667 and Rs.1,833 respectively.
59. In case of joint venture business, the method of accounting to be followed is
decided by:
(a) Separate act for joint venture
50. Which of the following statement is true?
(a) When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.
(b) When separate set of books is maintained, expenses paid by venturer will be credited to venturer's capital account.
(c) When separate set of books is maintained, expenses paid by venturer will be credited to Jt. venture account.
(d) When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.
51. In case of joint venture, a minor:
(a) Can be a co-venturer for the benefit of the venture.
(b) Can be a co-venturer if all other co-venturers agree
(c) Can be a co-venturer if permitted by the competent authority.
(d) Cannot be a co-venturer.
52. Which of the following statement is true?
(a) Co-ventures always shares profits and losses equally.
(b) Number of co-ventures can never be more than two.
(c) The relationship between co-venturers is principal & agent.
(d) Co-venturers may contribute funds for running the venture.
53. A&B has started a joint venture for purchase and sale of garments: Initial capital contribution was Rs.25,000 and Rs.50,000 respectively. There is no written agreement about share of profit loss amongst them. They purchased garments worth Rs.50,000 and sold for Rs.75,000. The profit of Rs.25,000 shared by them as:-
(a) Rs.8,333 and Rs.16,667
(b) Rs.10,000 and Rs.15,000
(c) Rs.12,500 and Rs.12,500
(d) Rs.20,000 and Rs.5,000
54. Karthik and Dhoni enter into a joint venture sharing profit and loss in the ratio 2:1. Karthik purchased the goods costing Rs.2,00,000. Dhoni sold the goods for Rs.2,50,000. Karthik is entiled to get 1% commission on purchase and Dhoni is entitled to get 5% commission on sales. The profit on venture will be
(a) Rs.35,500
(b) Rs.36,000
(c) Rs.34,000
(d) Rs.38,000
55. The minimum number of co-venture will be at-least _________ in joint venture business.
(a) 2
(b) 5
(c) 7
(d) 4
56. Which of the following is true?
(a) Co-ventures always shares profit equally.
(b) Number of co-ventures can never be more than two.
(c) The relationship between co-ventures is principal and agent.
(d) Co-ventures may contribute funds running the venture.
57. C&D enter into a joint venture to share profit in the ratio 5:3. A part from the profit, D is entitled to a commission of 5% of net profit after charging such commission. If net profit of joint venture is Rs.33,600 before charging such commission. What will be share proft C and D:
(a) C will get profit Rs.19,950 and D Rs.11,970
(b) C will get profit Rs.20,000 and D Rs.12,000
(c) C will get profit Rs.21,000 and D Rs.12,600
(d) C will get profit Rs.21,600 and D Rs.12,600
58. Aastha and Shivani entered into a joint venture sharing profits and losses in the ratio 2:1. Aastha purchased goods costing Rs.30,000. Shivani sold the goods for Rs.40,000. Aastha was entitled to get 1%. Commission on purchase and Shivani was entitled for 5% commission on sales. Aastha's and Shivani's share in profit on venture Would be:
(a) Rs.1,467 and Rs.733 respectively
(b) Rs.5,133 and Rs.2,567 respectively
(c) Rs.4,400 and Rs.2,200 respectively
(d) Rs.3,667 and Rs.1,833 respectively.
59. In case of joint venture business, the method of accounting to be followed is
decided by:
(a) Separate act for joint venture
(b) Accounting Standard
(c) Co-ventures as per their convenience
(d) ICAI
60. In case of joint venture, for purchase of machinery from Joint Bank A/c, in case separate set of books are maintained, the correct journal entry will be:
(a) Debit Machinery A/c and Credit Joint Bank A/c
(b) Debit Joint Venture A/c and Credit Joint Bank A/c
(c) Debit Machinery A/c and Credit Venture's Capital A/c
(d) Debit Joint Venture A/c and Credit Machinery A/c
61. A and B were partners in joint venture sharing profit and losses in proportion of 3:2. A supplies goods to the value of Rs.60,000 and incurs expenses amounting Rs.6,000. B supplies to the value of Rs.14,000 and his expenses amounted Rs.1,000. B sells goods on behalf of the joint venture and realizes Rs.1,00,000. B is entailed to a commission of 5% on sales. B settles his account by a bank draft. Find out the profit on venture.
(a) Rs.14,400
(b) Rs.14,000
(c) Rs.13,000
(d) Rs.13,200
62. In a joint venture X contributes Rs.25,000 and Y contributes Rs.50,000. Goods are purchased for Rs.56,000. Expenses amount to Rs.4000, sales amount to Rs.70,000, the remaining goods costing Rs.3,000 were taken over by Y at an agreed price of Rs.2,000. X and Y share profit and losses in ratio of 1:2 respectively. As a final settlement, how much X will receive?
(a) Rs.29,333
(b) Rs.30,000
(c) Rs.25,000
(d) Rs.29,000
63.Raj and Simran enter into a joint venture to sell silk, sharing profits and losses equally. Raj provides silk from his inventory Rs.1,00,000. He pays expenses amounting Rs.10,000. Simran incurs further expenses on carriage Rs.10,000. She received cash on sale of silk Rs.1,50,000. She also takes over goods to the value of Rs.20,000. Profit on venture will be
(c) Co-ventures as per their convenience
(d) ICAI
60. In case of joint venture, for purchase of machinery from Joint Bank A/c, in case separate set of books are maintained, the correct journal entry will be:
(a) Debit Machinery A/c and Credit Joint Bank A/c
(b) Debit Joint Venture A/c and Credit Joint Bank A/c
(c) Debit Machinery A/c and Credit Venture's Capital A/c
(d) Debit Joint Venture A/c and Credit Machinery A/c
61. A and B were partners in joint venture sharing profit and losses in proportion of 3:2. A supplies goods to the value of Rs.60,000 and incurs expenses amounting Rs.6,000. B supplies to the value of Rs.14,000 and his expenses amounted Rs.1,000. B sells goods on behalf of the joint venture and realizes Rs.1,00,000. B is entailed to a commission of 5% on sales. B settles his account by a bank draft. Find out the profit on venture.
(a) Rs.14,400
(b) Rs.14,000
(c) Rs.13,000
(d) Rs.13,200
62. In a joint venture X contributes Rs.25,000 and Y contributes Rs.50,000. Goods are purchased for Rs.56,000. Expenses amount to Rs.4000, sales amount to Rs.70,000, the remaining goods costing Rs.3,000 were taken over by Y at an agreed price of Rs.2,000. X and Y share profit and losses in ratio of 1:2 respectively. As a final settlement, how much X will receive?
(a) Rs.29,333
(b) Rs.30,000
(c) Rs.25,000
(d) Rs.29,000
63.Raj and Simran enter into a joint venture to sell silk, sharing profits and losses equally. Raj provides silk from his inventory Rs.1,00,000. He pays expenses amounting Rs.10,000. Simran incurs further expenses on carriage Rs.10,000. She received cash on sale of silk Rs.1,50,000. She also takes over goods to the value of Rs.20,000. Profit on venture will be
(a) Rs.30,000
(b) Rs.40,000
(c) Rs.50,000
(d) Rs.60,000
64. A minor can join as a co-ventures in a joint venture business :
(a) Yes, If accepted by all co-ventures.
(b) Yes, If accepted by competent authority
(c) Cannot become co-ventures.
(d) Yea, for the benefit of joint venture.
(c) Rs.50,000
(d) Rs.60,000
64. A minor can join as a co-ventures in a joint venture business :
(a) Yes, If accepted by all co-ventures.
(b) Yes, If accepted by competent authority
(c) Cannot become co-ventures.
(d) Yea, for the benefit of joint venture.
65. MATCH THE FOLLOWING ITEMS FROM COLUMN A WITH COLUMN B
|
S. No. |
Column A |
Column B |
|
1 |
The parties to joint venture is
called |
(a) Is terminable in nature |
|
2 |
Joint venture |
(b) Joint Bank account |
|
3 |
Memorandum Joint Venture Account is maintained in
case of |
(c) Co-ventures |
|
4 |
The Bank Account maintains in the same set of
books is called as |
(d) Same sets of books with own transactions only |
1. c
2. a
3. d
4. b
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